Gunkul Engineering Public Company Limited · 2018-02-26 · Gunkul Engineering Public Company (“Gunkul”) operates across the entire renewable energy value chain Founded in 1982

Gunkul Engineering Public Company Limited

Opportunity’s Day30th November 2016

Gunkul Engineering Public Company Limited

Opportunity’s Day30th November 2016

2

Strictly Private & ConfidentialContent

I. Company Overview

II. Investment Highlights

III. Industry Outlook

IV. Roadmap to 1,000 MW

V. Projects Update

VI. Financial Highlights

Appendix

2

8

16

20

23

58

3

Strictly Private & Confidential

Section I: Company Overview

4


Gunkul Overview

Gunkul Engineering Public Company (“Gunkul”) operates across the entire renewable energy value chain

Founded in 1982 as an electrical equipment trader. Gunkul later

expanded into manufacturing, EPC business, and filed for IPO in

2010 to grow its renewable generation business

Trader, manufacturer and EPC contractor: Complete value chain

business model provides end-to-end solution in the development

of renewable energy projects

Renewable energy power producer: Power projects with

contracted capacity(1) of 488 equity MW in Thailand, Japan and

Myanmar (approx. 46% solar, 51% wind, and 4% gas). As of the

year 2016, we have ~172 equity MW in operation

Approx. US$1 Billion market capitalization as of 28 November

2016 (SET:GUNKUL)

Notes:

(1) Including operational, under construction, and secured pipeline.

(2) As of October 2016

(3) Gunkul Group is a holding company with the Dhumrongpiyawut family owning 99.6% of the Group

Reliable manufacturer and supplier of over 5,000

electrical equipment and products1

2

World-class renewable energy projects with a visible and

robust pipeline across Asia 3

Reputable one-stop renewable energy EPC and O&M

service provider with over 15% market share in Thailand

Top 5 Shareholders(2)

Disconnecting

Switch

Arrester SF6 gas switchLow-voltage

switch

5

Strictly Private & ConfidentialFrom Equipment Trading to Renewable Energy

Secured PPA for

60MW Wind

Energy

Development

(WED)

Secured PPA for 30.9MW Gunkul Chubu

Powergen (GCPG)

Founded as an

electrical

equipment trader

1982

Set up factory for

manufacturing

1992 2010

Initial Public Offering

Entered into renewable energy sector

as EPC and O&M contractor

1st solar project

1st wind project

2012

1st gas engine power plant

25MW gas engine power plant

in Myanmar (GKMCP)

2013

Expanded into solar roof

business along with reputable

partners

Solar roof business

2014

Acquired 65MW of solar

projects in Japan

Solar PV module manufacturing

1 of 4 manufacturers in Thailand

producing solar PV modules under

Thai Industrial Standard

Acheived

contracted

capacity of 336

equity MW

2015

100

2011

Wind project MOU in Myanmar

Signed MOU with Myanmar Ministry

of Electric Power to develop

1,000MW Wind Project

Supplied and set up Thailand’s first wind

turbine for EGAT

Gunkul transformed itself from a trading company with volatile earnings to a renewable energy player that has

stable cashflow and high margins

Gunkul’s EBITDA from Renewable Power is Expected to Increase from 41% to 83% by 2018

Remark: Based only on the secured 500 equity MW in our portfolio and only 336MW to be COD by 2018

18%

83%

2018F EBITDA Breakdown

Trading & EPC Renewable Power Generation

59%41%

2015 EBITDA Breakdown

Trading & EPC Renewable Power Generation

Total contracted

capacity of 488

equity MW

2016

Target to achieve 500 equity

MW by 2017

& 1,000 equity MW by 2020

6

Strictly Private & ConfidentialHigh Quality Renewables Asset Portfolio

Gunkul Chubu Powergen (GCPG)

Ownership: Gunkul (51%), Chubu Electric (49%)

Gross / Equity MW: 30.9 / 15.8

COD: 2011 (7.4MW) and 2013 (23.5MW)

Offtaker / PPA tenor: PEA / 25 years

Gunkul Myanmar Central Power

(GKMCP)

Ownership: Gunkul (51%), Myanmar Central

Power (49%)


COD: 2013

Offtaker / PPA tenor: MEPE / 25 years

NK Power Solar (NKP)

Ownership: Gunkul (100%)


COD: 2013


Solar Rooftop Projects

Ownership: Gunkul (25% - 100%), WHA

Corporation Public (75%)


COD: 2013 - 2014

Offtaker / PPA tenor: MEA & PEA / 25 years

Rang Ngern Solution (RNS)

Ownership: Gunkul (67%), IAE (33%)


COD: 2015


G-Power Source (GPS)

Ownership: Gunkul (40%), EGCO (60%)


COD: 2012 (19.5MW) and 2013 (6.5MW)


Greenovation Power (GNP)



COD: 3Q 2017

Offtaker / PPA tenor: EGAT/ 25 years

Wind Energy Development (WED)



COD: 2016

Offtaker / PPA tenor: EGAT & PEA / 25 years

Korat Wind Energy (KWE)



COD: 1Q 2018

Offtaker / PPA tenor: EGAT / 25 years

Thailand and Myanmar: Gunkul’s assets are located in areas of high solar irradiation and rich wind resources

Offtakers:

EGAT: Electricity Generating Authority of Thailand

PEA: Provincial Electricity Authority (Thailand)

MEA: Metropolitan Electricity Authority (Thailand)

MEPE: Myanmar Electric Power Enterprise

Solar Projects

Wind Farms

Gas-Fired Plant

BMP Solar



COD: 2Q 2016


ECO Project



COD: 1Q 2017


7

Strictly Private & ConfidentialHigh Quality Renewables Asset Portfolio (Cont’d)

Sendai



COD: 1Q 2018

Offtaker / PPA tenor: Tohoku Electric Power / 20 years



COD: 4Q 2018

Offtaker / PPA tenor: Tokyo Electric Power / 20 years

Kimitsu

Solar Projects



COD: 1Q 2022

Offtaker / PPA tenor: Tokyo Electric Power / 20 years

Utsunomiya



COD: 1Q 2022

Offtaker / PPA tenor: Chugoku Electric Power / 20 years

Iwakuni

Gunkul’s assets are located in areas of high solar irradiation

8


Vision: To Grow Gunkul Into Asia’s Leading Renewables Company

Gunkul will continue to grow in both the domestic and international markets to transform itself into a

company with stable income and high margin

To achieve 500 equity MW in the year 2017

and secure 1,000 MW by the year 2020

To prepare company to be ready for

ASEAN Grid by 2020-2030

Expand in Thailand via bidding for

government projects and purchase of

PPAs

Increase capacity through international

expansion, for instance in Japan

Selectively grow trading and EPC

businesses that support our renewable

energy business

Myanmar’s Ministry of Electric Power

granted 10-year MOU for 1,000 MW in

Myanmar where Gunkul will conduct

feasibility study of wind speed (wind

energy study requires minimum 3-4 years)

and subsequently sell into ASEAN Grid

9


Section II: Investment Highlights

10


Investment Highlights Overview

Attractive Power Industry

in Thailand Fuelled by

Increasing Demand

Track Record of

Accelerated

Growth

Visible Pipeline from

Domestic and Overseas

Expansion

Experienced

Management Team

Able to Deliver

on Growth Targets

End-to-end

Capability Enables

Downstream

Integration of IPP

Development

1

26

3

Fast Growth in

Renewable Energy

Sector Supported by

Favorable

Government Policies

4

5

Investment

Highlights

11


Attractive Power Industry in Thailand Fuelled

by Increasing Demand

1

Capacity (GW) Reserve Margin (%)

Source: BMI

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

(1)

Source: Ministry of Energy

TWh

Notes:

(1) Refers to SPPs (Small Power Producers) and VSPPs (Very Small Power Producers). Excludes IPPs

Electricity Consumption will Continue to Outstrip Generation

Despite Thailand's Growth in Generation Capacity, Reserve Margin is Expected to Decline

12


Fast Growth in Renewable Energy Sector

Supported by Favorable Government Policies

2

Source: Thailand Ministry of Energy

Notes:

(1) This FiT rate applies to a project that delivers power into the grid in the year 2017. After 2017, the FiTv rate will be increased based on the core inflation rate. This only applies to waste (integrated

waste management), biomass and biogas (energy plants) projects.

(2) Projects located in Yala, Pattani, Narathiwat and 4 Sub-districts in Songkla (Jana Sub-district, Tepha Sub-district, Sabayoi Sub-district and Natawee Sub-district) only.

2036

19,634 MW

2014

7,490 MW

Source: Thailand Ministry of Energy

FiT (Baht/kWh) (1) FiT Premium (Baht/kWh) (2)

Fuel / Installed Capacity FiTF FiTV, 2017 FiT

Supporting

Period (y)

Bioenergy

Projects

(First 8 y)

Projects in 3

Southern

Provinces

1. Municipal Solid Waste (MSW)

Installed Capacity ≤ 1 MW 3.13 3.21 6.34 20 0.70 0.50

Installed Capacity > 1-3 MW 2.61 3.21 5.82 20 0.70 0.50

Installed Capacity > 3 MW 2.39 2.69 5.08 20 0.70 0.50

2. MSW (Landfill Gas) 5.60 - 5.60 10 - 0.50

3. Biomass

Installed Capacity ≤ 1 MW 3.13 2.21 5.34 20 0.50 0.50

Installed Capacity > 1-3 MW 2.61 2.21 4.82 20 0.40 0.50

Installed Capacity > 3 MW 2.39 1.85 4.24 20 0.30 0.50

4. Biogas (Waste / Solid Waste) 3.76 - 3.76 20 0.50 0.50

5. Biogas (Energy Crop) 2.79 2.55 5.34 20 0.50 0.50

6. Hydro Power

Installed Capacity ≤ 200 kW 4.90 - 4.90 20 - 0.50

7. Wind 6.06 - 6.06 20 - 0.50

8. Solar

Solar Farm (≤ 90 MWp) - - 5.66 25 - 0.50

PV rooftop (Households, ≤ 10

kWp)- - 6.85 25 - 0.50

PV rooftop (Business building /

Factories, > 10-250 kWp)- - 6.40 25 - 0.50

PV rooftop (Business building /

Factories, > 250-1,000 kWp)- - 6.01 25 - 0.50

Solar cell for Government and

Agriculture Cooperative (≤

5MWp)

- - 5.66 25 - 0.50

Growth in Renewable Energy Capacity will be

Lead by Solar and Wind PowerAttractive Feed-in Tariff (FiT) will Continue to

Encourage Development of Renewables Projects

13


Solar Gas Wind

Gunkul demonstrated a track record of successful capacity build-up and this translates into more stable and

recurring electricity revenue

Source: Company Filings

3 Track Record of Accelerated Growth

Equity MW

Under Construction / Under Development

(2016 – 2018)

In Operation

(2011 – 2016)

14


Visible Pipeline from Domestic and Overseas

Expansion

4

Domestic Projects Overseas Projects

THAILAND

WED, GNP, KWE Wind Farms

Location:Huai Bong /

Nongnamsai

Type: Wind Farm

Capacity: 170 MW

% shareholding: 100%

Project Milestones

Land Site Fully Secured

License Fully Secured

CODWED (2016), GNP

(2017), KWE (2018)JAPAN

Sendai Solar Power Plant

Location: Sendai, Japan

Type: Solar Power Plant

Capacity: 31.8 MW


Project Milestones

Financial close: 3Q2016

COD: 1Q2018

Kimitsu Solar Power Plant

Location: Kimitsu, Japan


Capacity: 33.5 MW


Project Milestones


COD: 4Q2018

MYANMAR

Granted MOU by MOEP

(Myanmar’s Ministry of Electric

Power) to conduct feasibility

study for wind projects in

Myanmar with total capacity of

1,000MW

Pipeline Project

Type:Solar Power

Plant

Installed

capacity:50 MW

%

shareholding:100%

Pipeline Project

Type:Solar Power

Plant

Installed

capacity:89.5 MW


Utsunomiya Solar Power Plant

Location: Tochigi, Japan


Capacity: 66.78 MW


Project Milestones


COD: 1Q2022

Iwakuni Solar Power Plant

Location: Yamakuchi, Japan


Capacity: 75.0 MW


Project Milestones


COD: 1Q2022

15


KYRGYZSTAN

End-to-end Capability Enables Downstream

Integration of IPP Development

5

Trading and ManufacturingEngineering, Procurement &

ConstructionPower Generation

Examples of In-House Products

Cables and accessories, capacitors, fuse and switches, grounding, hardware and connectors, Insulators, lightning protection, live part covers, maintenance equipment, meters, preformed, tools and instruments, transformers

Distribution

Lines

Transmission

Lines

Cable and accessories, fuse and switches, hardware and connectors, insulators, lightning protection, maintenance equipment, tools and instruments

Electricity

Plants

Wind turbine components, solar panel components

Low Voltage

Lines

Capacitors, explosion proof products, fuses and switches, grounding, hardware and connectors, insulators, lightning protection, meters, preformed, street lighting and control, telephone hardware

Substation Battery and chargers, capacitors, grounding, maintenance equipment, meters, tools and instruments, transformers

Low-voltage

switch

Cutout

Arrester

Disconnecting

Switch

SF6 gas switch

Project Reference

Project Owner

Total

MW

204.9

EPC O&M

1) GPS 26.0 P P

2) GCPG 30.9 P P

3) NK Power Solar 1.0 P P

4) CK & Sun Solar

Power Plant8.0 P P

5) Solatra Solar Power

Plant8.0 P

6) BSE (NMA) 12.5 P P

7) BSE (CPM1) 12.5 P P

8) Solar Rooftop

Projects11.0 P P

9) RNS 87.0 P

10) BMP 8.0 P P

Gunkul’s Own Projects

Power Plant Locations(1)

GCPG:

Solar 30.9 MW

GKMCP:

Gas Engine 25.0 MW

NKP:

Solar 1.0 MW

Solar Rooftop:

5.5 MW

Rang Ngern:

Solar 87.0 MWcv

GPS:

Solar 26.0 MW

GNP:

Wind 60.0 MW

WED:

Wind 60.0 MW

KWE:

Wind 50.0 MW

JAPAN

SENDAI:

Solar 31.8 MW

Kimitsu:

Solar 33.5 MW

Total Gross Capacity as of

2018: 423.7MW

Total Gross Capacity as of 14

October 2016: 243.4 MW

Solar Gas Wind Under ConstructionNotes:

(1) Excludes pipeline projects

“To achieve economies of scale and benefit in cost savings

Utsunomiya:

Solar 66.78 MW

Iwakuni:

Solar 75.0 MW

BMP:

Solar 8.0 MW

ECO:

Solar 5.0 MW

16


Experienced Management Team Able to Deliver

on Growth Targets

• 14 years of experience in the power industry

• 14 years of experience with Gunkul

• Senior Vice President, Executive Office since 2010

• Member of Nomination and Remuneration Committee

since 2008



• Senior Vice President, Factory since 2010

• 10-year expertise in Renewable Energy business

• Over 10-year experience with Gunkul

• Leading Gunkul to Initial Public Offering in 2010

• Deputy Managing Director 2010-2012

• Assistant Managing Director 2007-2010



• Deputy MD, Business Development & Strategic

Planning since 2016

• Assistant Managing Director, Business Development &

Strategic Planning 2014-2015

• 19-year expertise in manufacturing/ supplying electrical

products & renewable energy products, and generating

electrical power from renewable energy resources

• Over 19-year experience with Gunkul

• CEO since 2012, Managing Director 1998-2012

Mrs. Somluk

Kanuenghet

Senior Vice

President,

Executive Office

Mrs. Areewan

Chaloemdan

Senior Vice

President,

Factory

Dr. Somboon

Aueatchasai

Managing Director

Mr. Phongsakorn

Damnoen

Deputy MD,

Business

Development &

Strategic Planning

Miss Sopacha

Dhumrongpiyawut

Chief Executive

Officer



• Senior VP, Sales & Marketing-LED since 2016

• VP, Logistics 2011-2015



• Senior VP, PM & OM since 2015

Mr. Phudis

Triwilaskul

Senior VP, Sales &

Marketing-LED

Mr. Phairot

Phanukan

Senior VP, PM &

OM

Mr. ThitipongTecharatanayuenyong

Chief Financial Officer

Miss Naruechon

Dhumrongpiyawut

Senior VP, Strategic

Planning and

Investment

Mr. Thamrong

Chankraithong

Senior VP, Sales &

Marketing

• Founder and Chairman

• 34-year extensive experience in Energy

business

• First mover in Renewable Energy business

Mr. Gunkul

Dhumrongpiyawut

Chairman / Founder

6

• Over 15-year experience in financial management of

Thailand’s listed companies. 3 years of experience in

the power industry

• Expertise in capital market and derivative products

• CFO and member of the Risk Management committee

and Secretary since 2014



• Senior VP, Strategic Planning and Investment since

2014

• Senior VP, Logistics since 2016

• VP, Strategic Planning and Investment 2012-2014



• Senior VP, Sales & Marketing since 2010

• Assistant General Manager, Public Sector and

International 2008-2010

The Management team, who has successfully grown the Company to where it is today, is committed to

achieving Gunkul’s growth targets

17


Section III: Industry Outlook

18


Industry Outlook: Power Generation

Notes:

(1) Comprise of existing 37,612MW as of Dec 2014 + 57,459MW of new capacity – 24,736MW of retired capacity during 2015-2036

Reference: Thailand PDP2015-2036 section 2.1, 2.4, and 5.8

(2) Reference: Thailand PDP2015-2036 Table 3.4

Power Development Plan 2015 (PDP 2015) Alternative Energy Development Plan 2015 (AEDP 2015)

Thailand’s PDP 2015 target to increase the country’s total

installed capacity from 37,612MW in 2014 to 70,335MW(1) by

2036, representing a CAGR of 3%. Most of this growth will be

lead by an increase in capacity from renewable generation

In the latest AEDP 2015, Thailand increased its 2036 target

renewable energy capacity from 13,927 MW (AEDP 2013) to

19,634 MW, representing a 40% change from previous plan

Total 19,634 MW Total 7,490 MW

Fuel TypeCapacity in

2014 (MW)

Additional

Capacity (MW)

Target

Capacity in

2036 (MW)

Solar 1,299 4,702 6,000

Wind 225 2,778 3,002

Biomass 2542 3,028 5570

Hydro 3,048 234 3,282

Waste 66 434 500

Biogas 310 969 1,280

Total 7,490 12,144 19,634

56.22%20.04%

22.54%

1.20%

Contract Capacity 2014: 37,612MW

Combined Cycle

Thermal

RenewableEnergy

Others

37.00%

23.00%

35.0%

5.10%

Contract Capacity 2036F: 70,335MW

Combined Cycle

Thermal

RenewableEnergy

Others

19


Industry Outlook: Trading & EPC

Expected InvestmentTHB Billion

Source: EPPO as of Oct 2015 (http://www.eppo.go.th/info/5electricity_stat.htm)

Rising Electricity Demand Requires Continued

Expansion and Improvement of Electrical System

Investment in Transmission and Distribution

Systems Expected to Remain Substantial

Over the past five years, Thailand’s electricity peak demand

grew at a CAGR of ~3% from 2011 – 2015. In 2015 peak

demand experienced a strong 1.5% increase over 2014

Electricity Peak Demand (MW)

As indicated in PDP 2010(1), investments by the main electricity

authorities during 2010-2030 is budgeted to reach a total of THB

749Bn over a 20 year period

Currently, 13 transmission system development projects are

under construction and other 19 projects are in studying

processes

Note:

(1) Latest as of PDP 2010 because PDP 2015 did not disclose updated expected investment plan

20


In-house

Products

1.Bangsue-Bangyai

C1.Bangsue-Talingchan

5.Bangkapi-Bangbumru

7.Bangkapi-Minburi

C3.Bangsue-Pyatai-Huamark2.Bangsue-Thapra

Hualumpong-Bangkae

6.Taksin-Bangwa-Puttamonton sai 4

3.Morchit-Paholyathin-Sapanmai (Lumlukka)

C2.Bangsue-Thammasart Rungsit

C4. Hualumpong-Mahachai

4.Baring-Sumrong-Samutprakarn (Bangpu)

8.Outer Ring Road (A-D)

Transport Network of Rail and Mass Transit

Industry Outlook: Trading & EPC (Cont’d)

Thailand’s THB 2 trillion budget for improving the country’s infrastructure, including the construction of 9

Mass Rapid Transit lines, will create a big demand for our in-house electrical products

21


Section IV: Roadmap to 1,000 MW

22

Strictly Private & ConfidentialCompany Update

On October 12, 2016, Board of Directors has approved the Investment in Solar Power Plant

BMP Solar Project

- Project is located in Sa Kaeo Province , Thailand

- Contract Capacity of 8.0 MW

- Power purchase rate (Feed-in Tariff (FiT)) at THB 5.66 per unit for 25 years.

- COD since 2Q 2016

On November 29, 2016, Shareholders have approved the Investment in Solar Power Plant in Japan

Iwakuni Project

- Project is located in Iwakuni city, Yamaguchi Prefecture, Japan

- Contract Capacity of 75.0 MW

- The total project value is at approximate JYP 31,327.80 Million or THB 10,776.76 Million

- It was granted concession to sell electricity in power purchase, Feed-in Tariff (FiT), rate at JYP 32.00 per unit

for 20 years

23

Strictly Private & ConfidentialRoadmap to 1,000 Equity MW

Equity Investment and Capacity Buildup

Equity Investment (THB MM) Equity

Capacity

(MW)169 MW already fully funded

GCPG 15.8 MW

GPS 10.4 MW

NKS 1.0 MW

Solar Rooftop 2.8 MW

GKMCP 12.8 MW

RNS 58.3 MW

WED 60.0 MW

BMP 8.0 MW

169.0 MW

Internal Cash

Notes:

(1) Rights offering @ THB 22/share x 183MM shares (= THB 4,033MM) + Warrants @ THB 27/share x 92MM shares (= THB 2,475MM) + PP to SCB @ THB 22.84/shares x 41.5M shares (=THB 947MM) .

Warrant holders committed to exercise their warrants by 3Q 2017. Numerical values subject to rounding

(1)

GNP: 60MW

Project Cost:

THB5.8Bn

D/E: 75:25

KWE: 50MW

Project Cost:

THB4.5Bn

D/E: 75:25

Sendai: 32MW

Project Cost:

THB3.8Bn

D/E: 85:15

Kimitsu: 34MW

Project Cost:

THB4.2Bn

D/E: 85:15

Utsunomiya

: 67MW

Project

Cost:

THB8.4Bn

D/E: 85:15

Iwakuni: 75 MW

Project Cost:

THB10.8Bn

D/E: 85:15

ECO: 2.55MW

Project Cost:

THB0.13Bn

D/E: 75:25

1,000 MW by2020

COD 2016

24


Section V: Projects Update

25

ความคบหนาโครงการลม

โครงการพฒนาพลงงานลม (WED)

26


WED : Project Overview

Thailand wind map

Project location

Wind Speed: 5.7 m/s

Wind Speed

(m/sec)

Source: King Mongkut’s University of Technology Thondburi

Project Description

Project Name: Subplu1 & 2, Wayu

Type: Wind Farm

Contract capacity: 60 MW

Project Milestones

• Financial Close: Jul 2016

• Construction Period: 20 months

• COD: March 2016 for Subplu 1&2

November 22, 2016: First Sync. for Wayu

Tariff Structure

THB/KWh

Peak 4.2243

Off-peak 2.3567

Ft. -0.4283

Adder 3.5 (for 10 years since COD)

27


Total Energy production better than forecasting = 9%

WED : Energy Production

28


WED : Construction

29


WED : 1st Blade Signing Ceremony

30

Strictly Private & ConfidentialWED: Panorama perspective

31

Strictly Private & ConfidentialWED : Step by step to COD

32

Strictly Private & ConfidentialWED : Step by step to COD

33


โครงการกรโนเวชน พาวเวอร (GNP)

34


GNP: Project Overview

Thailand wind map

Project location

Wind Speed: 5.7 m/s

Wind Speed

(m/sec)


Project Description

Project Name: Saranhlom wind farm

Type: Wind Farm

Contract capacity: 67.5 MW

Project Milestones

• Financial Close: Jul 2016

• Construction Period: 17 months

• COD: Oct 2017

Tariff Structure

THB/KWh

Peak 4.2243

Off-peak 2.3567

Ft. -0.1590


35


GNP : S – Curve of Project (EPC)

36


GNP : Reference Pictures

37


GNP : Reference Pictures (Cont’d)

38


โครงการโคราชวนดเอนเนอรย (KWE)

39


KWE : Project Overview

Thailand wind map

Project location

Wind Speed: 5.7 m/s

Wind Speed

(m/sec)


Project Description

Project Name: Mittraphap wind farm

Type: Wind Farm

Contract capacity: 50 MW

Project Milestones

•Financial Close: November 2016

•Construction Period: 17 months (1)

•COD: March 2018

Note: Subject to change according to final delivery of Turbines

Tariff Structure

THB/KWh

Peak 4.2243

Off-peak 2.3567

Ft. -0.3699


40


KWE : Timeline

EPC Contract

Financial

Close

Construction period = 17 months

Nov16 2Q17 3Q17 4Q17 1 Mar181/

COD

Oct 16 1Q17

Note: 1/ Subject to change according to final delivery of WTG

41


KWE : Reference Pictures

42


KWE : Reference Pictures (Cont’d)

43

ความคบหนาโครงการทลงทนในประเทศญปน

โครงการเซนได (Sendai)

44


Sendai : Project Overview

รายละเอยดโครงการ

ชอโครงการ: เซนได

ทตงโครงการ: มยาง ประเทศญป น

สญญารบซอไฟ: 31.75 เมกะวตต

ขนาดตดตง: 38.10 เมกะวตต

ราคารบซอไฟ: 36 เยนตอกโลวตตชวโมง

ความคบหนาโครงการ

ความคบหนาของใบอนญาต: เสรจสมบรณ

ลงนามในสญญาก เงน: เสรจสมบรณ

ความคบหนาการกอสราง: 11.5% (ต.ค. 2559)

วนทแลวเสรจ: ไตรมาส 1 ป 2561

Project

location

Solar Radiation Map of Japan

45


Sendai : Reference Pictures

Pond for muddy water Pond for muddy water Drainage

S07 after readjustment S07 after readjustment Modules 1st shipment

7.99MWp

46


Sendai : Reference Pictures

N02 (tree removal) N03 (Condition after tree

cutting)

N03 (tree cutting)

N09 N04 (Condition after tree

cutting)

N04 (tree removal)

47


โครงการคมตซ (Kimitsu)

48



ชอโครงการ: คมตซ

ทตงโครงการ: ชบะ ประเทศญป น





ความคบหนาของใบอนญาต: เสรจสมบรณ

ลงนามในสญญาก เงน: ไตรมาส 1 ป 2560

ความคบหนาการกอสราง: งานดน 29.1% (ต.ค. 2559)

วนทแลวเสรจ: ไตรมาส 4 ป 2561


Kimitsu : Project Overview

Project

location

49


Kimitsu : Reference Pictures

LTA conducts Block 1

inspection

Toshiba site office

Block 1 condition Drainage: Block 1

Overview: Block 1 & Block 3

Block 2

50


Kimitsu : Reference Pictures

51


โครงการอซโนะมยะ (Utsunomiya)

52



ชอโครงการ: อซโนะมยะ

ทตงโครงการ: จ. โทชง ประเทศญป น





ความคบหนาของใบอนญาต: อยระหวางด าเนการ

ลงนามในสญญาก เงน: ประมาณ ไตรมาส 1 ป 2561

วนทเรมกอสราง: ประมาณ ไตรมาส 1 ป 2561

วนทแลวเสรจ: ประมาณ ไตรมาส 1 ป 2564


Utsunomiya : Project Overview

Project

location

53


Utsunomiya : Reference Pictures

54


โครงการอวาคน (Iwakuni)

55



ชอโครงการ: อวาคน

ทตงโครงการ: จ. ยามากจ ประเทศญปน





ความคบหนาของใบอนญาต: อยระหวางด าเนการ

ลงนามในสญญากเงน: ประมาณ ไตรมาส 4 ป 2560

วนทเรมกอสราง: ประมาณ ไตรมาส 4 ป 2560

วนทแลวเสรจ: ประมาณ ไตรมาส 1 ป 2565


Iwakuni : Project Overview

Project

location

56


Iwakuni : Reference Pictures

57


ทประชมวสามญผถอหนพจารณาอนมตให GUNKUL เขาท ารายการไดมาซงสนทรพย

การเขาลงทนในโครงการโรงไฟฟาพลงงานแสงอาทตย Iwakuni City Miwa Town Solar Power Plant ประเทศญปน

ของ Godo Kaisha East Japan Solar 13 (“โครงการ Iwakuni” หรอ “IWN”) โดยมมลคาโครงการรวมประมาณ

31,327.80 ลานเยน หรอคดเปน 10,776.76 ลานบาท*

Iwakuni : Shareholders Approved

* คดค านวนจากอตราแลกเปลยนของธนาคารไทยพาณชย ณ วนท 11 ตลาคม 2559 ซงเปนวนกอนน าเสนอตอกรรมการบรษทฯ ทอตรา 100 บาทตอ 34.40 เยน

58


Section VI: Financial Highlights


59

Revenue Breakdown

Revenue Breakdown by Business UnitMillion Baht.

2,074

3,711

2,976

2,045

4,306

2,651

4,460

58


60

Note : Total Revenue from Government , Private and Foreign Customer is considered as revenue from Conventional Business.

Revenue Breakdown

Revenue Breakdown by Customer TypeMillion Baht.

3,711

2,074

2015

20162,074 MB

3,711 MB

-44%

59


61

Revenues & Profit as of 30 Sep 2016

Revenue vs. Overall Gross Margin Net Profit vs. Net Profit Margin

GPG divestment

GPS divestment

60


62

Balance Sheet 2015 VS 2016

Balance Sheet

As of Sep 30,2016As of Dec 31,2015

Total Asset 22,714Million Baht.

Current Liabilities

Non Current Liabilities

Shareholders' Equities

Current Asset

Non Current Asset

Total Asset 18,815

61


63

Liabilities & D/E Ratio

Gunkul’s Liabilities D/E Ratio

Million Baht.

4,814

1,458

3,879

10,225

12,863

62


64

Profit sharing from GPS & GCPG & WHA-GK

Million Baht.

206(9 M)

276

198(9 M)

2015 2016

280

63

65


Dividend and Leverage Policies

Dividend Policies Leverage Policies

The Company has dividend payout ratio of

at least 40% of net profit of the Company

only (Unconsolidated Basis) in which net

profit is after deducting corporate income

tax, legal reserves, and other reserves.

Overall D/E Ratio: not exceed 3 times

Renewable Power generation: Non-

recourse financing

Thailand

Japan D/E Ratio: 85:15

D/E Ratio: 70:30 and 75:25

D/E Ratio: 75:25

Yr 2016


66

• ทประชมสามญผถอหนประจ าป 2558 เมอวนท 10 เมษายน 2558 ไดมมตอนมตใหมการออกและเสนอขายหนกระยะสน ไมเกน 1,000 ลานบาท

• ทประชมสามญผถอหนประจ าป 2559 เมอวนท 26 เมษายน 2559 ไดมมตอนมตใหมการออกและเสนอขายหนกเพมอกจ านวน2,000 ลานบาท รวมเปนวงเงนส าหรบการออกหนก อายไมเกน7 ป เปนจ านวนไมเกน 3,000 ลานบาท

• เสนอเพอขออนมตเพมวงเงนการออกและเสนอขายหนกอกจ านวน 3,000 ลานบาท รวมเปนวงเงนใหมไมเกน 6,000 ลานบาท อายไมเกน 7 ป

Debentures : Overview


67

Debentures : Purposes

• เพอเปนวงเงนส ารองใหบรษทฯ มสภาพคลองเพยงพอตอการขยายการลงทนในอนาคต

• เพอปองกนความเสยงจากสภาวะความผนผวนของตลาดเงนทอาจกอใหเกดการขาดสภาพคลองในตลาดเงนระยะสน

• เพอปองกนผลกระทบตอการ funding ผานตลาดตราสารหนระยะสน โดยใหการระดมทนมความคลองตวและยดหยนมากขน

• เพอบรหารสดสวนหนสนระยะสน ตอหนสนระยะยาวใหเหมาะสม


68

Debentures Type

Debenture Type

หนกทกประเภท ชนดระบชอผถอหรอไมระบชอผถอ ประเภทดอยสทธ หรอไมดอยสทธ ซงอาจมหรอไมม หลกประกน และ อาจมหรอไมมผถอแทนผถอหนก

Currency เงนบาท หรอ เงนเหรยญสหรฐฯ และ/ หรอ เงนสกลตางประเทศอนๆ

Issue Size วงเงนไมเกน 6,000 ลานบาท (หรอเทยบเทา)

Tenor อายไมเกน 7 ป

Coupon ขนอยกบความเหมาะสม และสภาพตลาดในขณะทออก และเสนอขาย


69

Cash Flow Situation vs Additional Funding required

Propose to Shareholders’

approval for new Debenture

in total amount of 6,000 MB


70

Impact to D/E

D/E as at 30 September 2016

Total Debt 12,863 M

Total Equities 9,851 M

D/E 1.31

D/E after increasing total debt amount of THB 5,700 M

Total Debt 12,863 MAdditional Debt 5,700 M (2,700M + 3,000M)

New Debt 18,563M

Total Equities 9,851 M

D/E 1.88


71

** Refer to Debentures market rate at issuance period

Debentures : Shareholders approved

พจารณาอนมตการเพมวงเงนการออกและเสนอขายหนก เพมอกจ านวน 3,000 ลานบาท

จากวงเงนเดมไมเกน 3,000 ลานบาทรวมเปนวงเงนใหมไมเกน 6,000 ลานบาท อายไมเกน 7 ป

72


Appendix

73


Key Information

Solar FarmSolar

Rooftop

Wind

Farm

Gas

Engine

Feed-in-Tariff

Scheme

(Year 2015 till now)

Adder Scheme

(Year 2010-2014)

Feed-in-Tariff

Scheme

(Year 2014 till now)

Adder Scheme

(Year 2012-2014)

Fixed Rental Scheme

(Year 2013)

Project

Investment

Costs

~THB 60 mm per

MW~THB70 - 100mm per MW ~THB 60 mm per MW ~THB 85 mm per MW ~THB 35 mm per MW

Technology Thin Film CIS modules without cadmium or

Crystalline Silicon ModuleCrystalline Silicon Module Horizontal Wind Turbine Gas Fired Engine

Selling Price

(Base Tariff + Ft)

Feed-in Tariff (FiT)

At THB 5.66 per

kWh for 25 years

since COD

Peak*: THB 4.2243 per

kWh,

Off-Peak**: THB 2.3567

per kWh

Ft***: THB -0.4770 per

kWh

Feed-in Tariff (FIT) for

commercial size (over

500kW per site)

THB 6.16 per kWh for 25

years since COD

Peak*: THB 4.2243 per

kWh,

Off-Peak**: THB 2.3567

per kWh

Ft***: THB -0.4770 per

kWh

~US$0.034 /kWh

Adder (Non-FiT) - THB8.0 per kWh for 10

years since COD

-THB 3.5 per kWh for 10

years since COD

-

BOI Tax

ExemptionYear 1st – 5th :100%

Year 1st – 8th: 100%

Year 9th – 13th: 50%Year 1st – 5th :100%

Import Tax 100% import tax exemption

Yearly Revenue ~THB 8 mm per MW ~THB 20 mm per MW ~THB 8 mm per MW ~THB 16 mm per MW ~THB 7 mm per MW

Power Plant Business: Key Info

Notes:

As of June 2016

* Peak: Mon – Fri

** Off Peak: Holiday

*** Ft: Fuel Adjustment Charge (at the given time)

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Disclaimer

This presentation has been prepared by Gunkul Engineering Public Company Limited (“Gunkul”) for informational purposes only and

does not constitute a recommendation regarding the securities of Gunkul or any of its subsidiaries. This presentation is not intended

as, and does not form part of, any offer to sell or solicitation or invitation to buy or subscribe for any securities. Neither this presentation

nor anything contained herein shall form the basis of, or be relied on in connection with, any contract or commitment whatsoever.

Gunkul makes no representation or warranty, either expressed or implied, in relation to the accuracy, completeness or reliability of the

information contained in this presentation. The information set out herein may be subject to updating, completion, revision, verification

and amendment without notice and such information may change materially. The information in this presentation should not be

regarded by recipients as a substitute for the exercise of their own judgment.

This presentation may contain forward-looking statements and estimates with respect to the future operations and performance of

Gunkul, its subsidiaries and affiliates. These forward-looking statements are subject to various assumptions, risks and uncertainties,

many of which are difficult to predict and are generally beyond the control of Gunkul. Such assumptions, risks and uncertainties could

cause actual results and developments to differ materially from those expressed in or implied by the forward-looking statements.

Neither Gunkul nor any of its directors, officers, employees, advisors or representatives assumes any responsibility to update any of

the forward-looking statements to conform such statements to actual results or developments, to reflect the occurrence of anticipated

results or otherwise. Neither Gunkul nor any of its directors, officers, employees, advisors or representatives nor any other person

accepts any liability whatsoever for any loss, however arising, from any use of this document or its contents or otherwise arising in

connection therewith.

Any opinions expressed in this presentation are subject to change without notice and may differ or be contrary to opinions expressed

by other business areas or groups of Gunkul as a result of using different assumptions and criterion.

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Gunkul Engineering Public Company Limited · 2018-02-26 · Gunkul Engineering Public Company (“Gunkul”) operates across the entire renewable energy value chain Founded in 1982